Ukraine and the World Bank are implementing the SURGE project in the fiscal sector to support recovery. Agreements totalling $750 million signed

Today, on 13 November, Minister of Finance of Ukraine Sergii Marchenko and World Bank Regional Director for Eastern Europe Bob Saum signed financial agreements under the new systemic project “Supporting Reconstruction through Smart Fiscal Governance”(SURGE). 

The project aims to create an enabling environment and institutional framework for the effective and accountable implementation and financing of climate-smart recovery. 

The planned total funding for the project is USD 750 million. It is expected that Ukraine will complete the measures envisaged by the Loan Agreement with the IBRD by the end of 2024 and receive funds in the amount of USD 400 million.

Thus, an agreement was signed on a USD 450 million loan from the International Bank for Reconstruction and Development (IBRD) from the ADVANCE Ukraine Trust Fund, supported by the Government of Japan. Also, a USD 300 million loan agreement from the Bank's Special Programme for Ukraine and Moldova Recovery (SPUR).

“Thanks to the active cooperation of the Ministry of Finance of Ukraine, the Government, and the World Bank, we are able to attract the necessary resources to support and develop key areas of citizens' lives and administrative processes. The implementation of the SURGE project will help the Government of Ukraine improve the public investment management process, making it more efficient and transparent. This is an important step towards further meeting Ukraine's recovery needs,” said Sergii Marchenko.

In addition, the parties signed a grant agreement under the investment component "Strengthening Government Capacity for Fiscal Reform Implementation” (STRONG) in the amount of USD 10 million from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF). The STRONG project aims to support the effective implementation of institutional reforms under SURGE.

SURGE will be implemented using the Programme-for-Results financial instrument. 

The objective is to support the efforts of the Government of Ukraine to establish an effective public investment management system in the context of post-war recovery and reconstruction, improve fiscal management at the local level, and enhance medium-term and programme budgeting at the local level and revenue administration.